When the venture capitalists were too hard to win over, Wonder Technology Solutions turned to crowdfunding.
Wonder Technology Solutions has developed a small GPS tracker that people can use to have control over their kids or pets. The product is called Trax and can be traced with a simple smartphone app.
The company has now raised $1.4 million through the crowdfunding platform Pepins, which Breakit has written about earlier (article in Swedish). The goal was to raise somwhere between $1.2 and 1.8 million (10-15 million SEK).
“Times are tough when it comes to raising capital so we are really happy with this outcome”, co-founder and CFO, Tobias Stenberg says.
“We weren’t quite ready for a series A round so we felt that this was a better way for us to go”, he adds.
The company has raised over $3 million from previous rounds. The angel investor network Stockholms affärsänglar owns 24 percent, VC firm Etagra Group holds 16 percent of the shares, and British Telecom holds 8 percent of the shares.
Although around half of the new capital comes from pre-existing owners, the company has found it harder to convince venture capitalists in the latest round.
“We have noticed that the capital market is much slower now. People are worried that a tech bubble is coming and the stock market has been shaky lately. That affects us as well”, Tobias Stenberg says.
The new money will primarily be used to increase sales. The company has set a clear goal for 2016: To be cash flow positive.
“That’s the main goal. To be able to re-invest our own profits rather than raising capital. Looking for capital is time consuming and takes great effort. A lot of companies seem to think that venture capital is an infinite resource. I think that’s the wrong strategy”, Tobias Stenberg says.